American Express to cut 5% of workforce amid AI integration

American Express has announced plans to reduce its global workforce by approximately 5%, affecting between 3,500 and 4,000 employees. The restructuring aims to increase operational efficiency, accelerate innovation, and prepare the organization for the integration of artificial intelligence.

The announcement follows a third-quarter financial report in which the company saw revenue rise 9% to $20.06 billion and net profit increase 28% to $3.7 billion. Despite these strong earnings, the company noted that expenses are growing alongside revenue. CEO Stephen Squeri stated that the company needs to become a more agile and efficient organization to succeed in the coming years.

While the company reported record quarterly revenue and beat profit expectations, its stock experienced a decline following the job cut announcement. The company continues to invest heavily in customer benefits and statement credits to maintain cardmember spending growth.